Select edible oils up on festive buying, global cues

Select edible oils recovered at the wholesale oils and oilseeds market during the past week on buying support by vanaspati millers and retailers to meet the upcoming festivities, amid a firming global trend.

Palm oil rose in Malaysia, tracking an advance in soyabeans, after a US government report showed the nation’s farmers will cut planting of the oilseed used to make a substitute cooking oil.

Meanwhile, palm oil rose 1.7 per cent to $1,118 a tonne in Kuala Lumpur, the main hub of supply of oil to global markets.

Besides, stockists and retailers enlarged their holdings to meet the upcoming “Navratra” festival demand, which in turn further fuelled the uptrend.

In the national capital, palmolein (rbd) and palmolein (Kandla) oils shot up by Rs 60 and Rs 70 to Rs 5670 and Rs 5,380 per quintal, respectively.

Soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils also moved up by Rs 30 each to Rs 5,770 and Rs 5,730, while crude palm oil (ex-kandla), too, traded higher by the same margin to Rs 5,080 per quintal.

GRAINS: In restricted activity, wheat and maize prices declined at the wholesale grains market during the week under review on reduced offtake against adequate supply.

Adequate stocks position following increased arrivals from the producing belts put pressure on the prices.

Traders said increased supplies in the market, amid reduced offtake by stockists, mainly led to a decline in wheat prices.

Wheat dara (for mills) and wheat deshi remained under pressure and declined by Rs 5 and Rs 25 to Rs 1,195-1,200 and Rs 1,650-1,800 per quintal, respectively.

Atta chakki delivery also shed Rs 5 to Rs 1,185-1,190 per 90 kg. However, maida and sooji held steady at Rs 740-770 and Rs 800-820 per 50 kg, respectively.

Reduced industrial demand helped other bold grain prices to move down. Maize eased to Rs 1,270-1,280 against last week’s level of Rs 1,310-1,320 per quintal.

PULSES: Weak conditions developed at the wholesale pulses market during the past week as select pulses led by gram declined owing to slackness in demand at prevailing higher levels, against adequate stocks position.

Market analysts said adequate supplies in the market against sluggish demand at the prevailing higher levels mainly led to a fall in select pulses prices.

Meanwhile, the state-run trading firm MMTC invited tenders for the import of red lentils and PEC invited bids for yellow peas for sale in the domestic market, which influenced the market sentiment.

At the domestic front, gram declined by Rs 75 to Rs 2,375-2,400, while its dal local and best quality traded lower by the same margin at Rs 2,650-2,665 and Rs 2,750-2,850 per quintal, respectively.

Kabli gram small variety and moth were also traded lower by Rs 50 and Rs 100 to Rs 4,000-5400 and 2,200-2,500 per quintal, respectively.

Elsewhere, other pulses prices moved in a tight range on alternate bouts of trading and settled around the previous levels.

SUGAR: Sugar prices rose in the wholesale market during the week under review following pick-up in demand amid restricted supply from mills and recorded gains up to Rs 50 per quintal.

Market analysts said fresh buying by retail customers for the new month and rise in demand from bulk consumers, such as ice cream and soft drink makers, against restricted supply mainly kept the sweetener prices up.

Trading sentiment was also boosted after the Government allowed export of sugar.

Sugar ready medium and second grade prices rose Rs 25 each to Rs 3,000-3,150 and Rs 2,990-3,125 per quintal, respectively.

Similarly, sugar mill delivery M-30 and S-30 prices rose Rs 25 each to Rs 2,800-2,950 and Rs 2,775-2,925 per quintal, respectively.

Among millgate excluding duty section, sugar Budhana and Dorala went up by Rs 20 each to Rs 2,850 and Rs 2,895 per quintal, respectively.

Thanabhavan and asmoli also moved up by Rs 20 each to Rs 2,845 and Rs 2,920 per quintal, respectively.

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